During a recent meeting at work, a colleague accused me of bullying her. Also present at the meeting was our manager. The allegation was made during a disagreement regarding the allocation of resources when she stated "I don't have to sit here and be bullied". I was taken aback by the statement and immediately asked our manager to fully investigate the allegation as I felt I had done nothing of the sort, and I left the meeting and workplace. I was due to commence a two week higher duties assignment in our Managers role on the following Monday and I advised my manager that it would not be reasonable for me to take up that role, (which would involve managing my colleague) while this allegation existed. A week after the allegation was made my colleague was asked by a senior manager to provide some documentation or evidence supporting her allegation, which she has done (although I have not seen this document). I have now been advised that there is insufficient basis for the allegation to proceed and that no further action in regards to the allegation will be taken, instead senior management believes the allegation to be a "symptom" of deeper seated problems within the management team and that we will all be undergoing mediation to help us work together better. It strikes me as being "no one has done anything wrong here, let's just move forward and all play nicely" Whilst I understand the solution planned by my organisation, I remain concerned that such a serious allegation can be made with absolutely no consequence when found to have no basis. For reasons that I don't even understand myself, the allegation hit me quite hard and was distressing. I took some time off work, I also lost a carer development opportunity to act in my managers role and financially lost some higher duties allowance. But perhaps most of all I am concerned that "mud will stick". Do I have the basis of a defamation case?